The present invention relates to an auction system for making match between a person who wants to obtain a loan, i.e., a potential borrower, and a person who wants to finance a loan, i.e., a potential lender through a network, and a method therefor.
Normally, a company which wants to obtain a loan requests it to a specialized financier such as a bank or a nonbank financial organization. However, as is represented by the problem of credit crunch for small and medium companies, the current financing method in Japan has several problems as will be described below.
First, in association with credit limit decision (decision of risk that a company bankrupts to be unable to repay), there is a large time lag between the financing requiring time and the actual financing time. In addition, the fund supply route for risky financing has multiple stages, and the distribution cost therein makes the risk premium too larger. Furthermore, since the indirect financing system is employed, individual assets that are supposed to be able to bear the risk cannot select the borrower, so the acceptable risk of the assets is limited.
For these reasons, even a superior company eligible for a loan at an interest lower than the market average must pay a high interest or cannot be financed in some cases. In addition, an unsecured loan from a nonbank financial organization requires a higher interest payment. As described above, companies in Japan must pay unnecessarily high interests, and this probably impedes development of domestic industries.